5 Major VAT Developments in Saudi Arabia

Source https://www.vatupdate.com/2022/06/05/5-major-vat-developments-in-saudi-arabia/

Highlights

• E-Invoicing:?Saudi tax authorities (ZATCA) announced the launch of the E-Invoicing Developer Portal (Sandbox)
• ZATCA announced legislative pieces on e-invoicing for public consultation
• Saudi Arabia: Exemption from fines and financial penalties initiative
• KSA Tax Authority publishes a newly updated VAT Guideline on Employee Benefits
• KSA Tax Authorities announces a tax amnesty effective from 1 June 2022 to 30 November 2022

E-Invoicing

• E-invoicing Phase 2 Developments: Launch of the e-invoicing portal & Proposed changes to e-invoicing rules
• Electronic invoices test sandbox for testing prior to Jan 2023 full integration
• FATOORAH, electronic invoicing project phase 2 as January, 2023
• KSA Tax Authorities to subsidize the purchase of e-invoicing Software solutions for Taxpayers
• Mandatory E-Invoicing Phase 2 (Jan 1, 2023): “integration phase” all invoicing systems must be compatible with the ZATCA system
• New e-invoicing system in KSA
• Saudi tax authorities (ZATCA) announced the launch of the E-Invoicing Developer Portal (Sandbox)
• ZATCA announced legislative pieces on e-invoicing for public consultation

Employee Benefits

• KSA Tax Authority publishes a newly updated VAT Guideline on Employee Benefits

Other

• Changes to VAT, invoicing and customs charges

Penalties

• Penalty waiver relaunched for all taxes, including VAT and excise tax
• Saudi Arabia: Exemption from fines and financial penalties initiative
• ZATCA Exempts Its Taxpayers from Fines and Financial Penalties

Rate

• Al-Jadaan: Saudi Arabia will ‘ultimately’ consider cutting VAT
• Saudi Arabia will eventually consider reducing VAT – Finance Minister

Reporting

• Saudi Arabia: VAT Filing and Payment Deadline for April 2022 Returns

Tax Amnesty

• KSA Tax Authorities announces a tax amnesty effective from 1 June 2022 to 30 November 2022

VAT Law

• Implementing Regulations of the VAT law (English version)